MIRA INFORM REPORT

 

 

Report No. :

349171

Report Date :

17.11.2015

 

IDENTIFICATION DETAILS

 

Name :

SOHAR STEEL LLC

 

 

Registered Office :

Plot No. 11, Sohar Industrial Port Majees 452 Sohar 322

 

 

Country :

Oman

 

 

Date of Incorporation :

18.09.2005

 

 

Com. Reg. No.:

3/24306/0

 

 

Legal Form :

Limited Liability Company – LLC

 

 

Line of Business :

Subject is engaged in the production of steel billets and moulds.

 

 

No. of Employee :

250

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Oman

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

OMAN ECONOMIC OVERVIEW

 

Oman is heavily dependent on dwindling oil resources, which generates 77% of government revenue. It is using enhanced oil recovery techniques to boost production. Muscat has actively pursued a development plan that focuses on diversification, industrialization, and privatization, with the objective of reducing the oil sector's contribution to GDP from 46% to 9% by 2020. Muscat also is focused on creating more jobs to employ the rising numbers of Omanis entering the workforce. Tourism and gas-based industries are key components of the government's diversification strategy. However, increases in social welfare benefits, particularly since the Arab Spring, have challenged the government's ability to effectively balance its budget as oil prices decline. Despite government acknowledgement that Oman’s expansive social welfare benefits are unsustainable, Oman authorities are comfortable with short-term budget deficits and have approved an expansionary 2015 budget. Concurrently, Oman has expanded efforts to support the development of small and medium-size enterprises and entrepreneurship. Government agencies and large oligarchic group companies have announced new initiatives to spin off non-essential functions to entrepreneurs, incubate new businesses, train and mentor up and coming business people, and provide financing for start-ups.

 

Source : CIA

 

 

SUMMARY

 

Company Name                                    : SOHAR STEEL LLC

Country of Origin                                   : Oman

Legal Form                                           : Limited Liability Company – LLC

Registration Date                                  : 18th September 2005

Commercial Registration Number           : 3/24306/0

Membership Number                             : 231

Issued Capital                                       : RO 18,000,000

Paid up Capital                                     : RO 18,000,000

Total Workforce                                     : 250

Activities                                               : Production of steel billets and moulds.

Financial Condition                                : Fair

Payments                                             : Regular

Operating Trend                                    : Steady

Person Interviewed                                : Thabet Al Hamdramy, Administration Manager

 

 

COMPANY NAME

 

SOHAR STEEL LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Location           : Plot No. 11, Sohar Industrial Port

Area                 : Majees

 

PO Box                        : 452

 

Town                : Sohar 322

Country : Oman

 

Telephone         : (968) 26850205 / 26751567

Facsimile          : (968) 26850204

Mobile              : (968) 96781295 / 92898927 / 96631755 / 96631755

Email                : info@soharsteelsms.com / ravi@soharsteelsms.com / saravanan@soharsteelsms.com

 

Premises

 

Subject operates from a suite of offices and a factory covering an area of 250,000 square metres that are rented and located in the Industrial Area of Sohar.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Mohamed Reda Abdul Amir                                                              Managing Director

 

·       Tawfiq Jawad Abdul Rasool                                                              Director

 

·       Jameel Ali Sultan                                                                              Director

 

·       Subha Madhav Rao                                                                          Director

 

·       Khalid Tawfiq Jawad Abdul Rasool                                                    Director

 

·       G N Khadse                                                                                     Chief Executive Officer

 

·       Thabet Al Hamdramy                                                                        Administration Manager

 

·       L Saravanan                                                                         Finance Manager

 

·       Ravi Shanker                                                                                    Financial Controller

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 18th September 2005

 

Legal Form                  : Limited Liability Company – LLC

 

Commercial Reg. No.   : 3/24306/0

 

Membership No.           : 231

 

Issued Capital              : RO 18,000,000

 

Paid up Capital            : RO 18,000,000

 

Name of Shareholder (s)                                                                 Percentage                                   

 

·       Al Sharq Sohar Steel Rolling Mills LLC                                               95%

PO Box: 12

Sohar 327

Tel: (968) 26751567 / 26851567

Fax: (968) 26751569

 

·       Mohamed Reda Abdul Amir                                                                5%

 

 

AFFILIATED COMPANIES

 

·       Middle East Conversion Industry LLC

Muscat

 

 

OPERATIONS

 

Activities: Engaged in the production of steel billets and moulds.

 

The present plant facilities include Ultra High Power (UHP) Electric Arc Furnace (EAF) with 36 MT capacity, powered by 30 MVA transformer and Ladle Furnace (LF) of 5 MVA power. The 3 strand Caster of 6 meter radius can cast billet sizes of 100, 120 and 130 mm. Hydraulic shear is used for the automatic cutting of billets. The plant is capable of receiving scrap, DRI and HBI as raw material.

 

Subject has recently announced that by the end of 2014 production capacity will rise to 700,000 mt per annum

 

Production Capacity: 500,000 MT of steel billets per year.

 

Import Countries: Europe and the Far East

 

International Suppliers:

 

·       Jindal Steel              India

 

Operating Trend: Steady

 

Subject has a workforce of approximately 250 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Riyal Omani (RO)

 

                                                Year Ending 31/12/13:               Year Ending 31/12/14:

 

Total Sales                                RO 76,445,000                          RO 77,680,000

 

Local sources consider subject’s financial condition to be Fair.

 

The above financial figures are based on estimations by our local sources.

 

 

BANKERS

 

·       HSBC Bank Middle East

Muttrah Business District

PO Box: 240, Ruwi 112

Muscat

Tel: (968) 24700810 / 24799920 / 24799927

Fax: (968) 24704241

 

 

PAYMENT HISTORY

 

Regular

 

 

GENERAL COMMENTS

 

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.17

UK Pound

1

Rs.100.66

Euro

1

Rs.70.97

 

 

INFORMATION DETAILS

 

Analysis Done by :

HNA

 

 

Report Prepared by :

ANK

 


 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.